If the Equilibrium Interest Rate in the Money Market Is

question 69

Multiple Choice

If the equilibrium interest rate in the money market is 5%, then at an interest rate of 2%, money demanded is _____ than money supplied.

• A)less than
• B)greater than
• C)equal to
• D)It is impossible to predict which is greater, money demanded or money supplied.

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Definitions:

Formal

Pertaining to conventions, rules, or established procedures often recognized by official institutions or customs.

Strategic Ambiguity

The deliberate use of vague or indistinct language to achieve a specific objective or to adapt to multiple situations.

Multiple Goals

The presence of more than one objective that an individual or organization aims to achieve.

Tenuous

Describes something that is very weak, slight, or uncertain; having little substance or significance.